Which One of the Following Will Best Reduce the Risk

Multiple Choice

Which one of the following will best reduce the risk of a project by lowering the degree of operating leverage?

A) hiring temporary workers from an employment agency rather than hiring part-time production employees
B) subcontracting portions of the project rather than purchasing new equipment to do all the work in-house
C) leasing equipment on a long-term basis rather than buying equipment
D) lowering the projected selling price per unit
E) changing the proposed labor-intensive production method to a more capital intensive method